Market Watch: BAE steps up with DigitalNet acquisition
BAE Systems Plc. announced this month that BAE Systems North America, its wholly owned U.S. subsidiary, has entered into a definitive agreement to acquire DigitalNet Holdings Inc.
Market Watch: Are M&A deals in government services really high risk?
In my view, the attributes of the government services industry reduce the risk in mergers and acquisitions to a level well below what is prevalent in other business sectors. The recent history and pace of industry transactions supports this thesis. With few exceptions, government services mergers and acquisitions have added value to the acquirers business, quantitatively, qualitatively or both.
Market Watch: Strong fundamentals trump occasional problems
The federal government services business, as reflected in the performance of publicly traded federal IT companies, turned in a record performance over the past year.
Market Watch: How to evaluate contingent payments in sale transactions
Undeniably, the cash has flowed over the past three years as defense and government IT companies have participated in an active mergers and acquisitions market. But in an estimated one-fourth of those transactions, the flow has tended toward non-cash payments.
Market Watch: Wake up, America
Increasingly, some industry observers, analysts and investors are expressing concern about emerging risks that may derail the strong operating and stock market performance of government services companies.
Market Watch: Wall Street demands growth ? growth demands M&A
The continuing strength in merger and acquisition activity in government IT and defense services must be viewed with a clear understanding that acquisitions are a strategic necessity.
Market Watch: How to judge the value of federal IT companies
Do market valuations of federal information technology companies accurately reflect risks and opportunities?
Market Watch: M&A good times march straight into 2004
Many factors driving consolidation over the past two years are still in place as we begin 2004. Mergers and acquisitions in government services and defense product sectors in 2003 were unprecedented at 147 transactions. That's 14 percent more than in 2002, which saw a then-record 129 transactions. By comparison, from 1999 to 2001, the average was 95 deals.
Market Watch: Expect strong 2004, but 2003's gains will be hard to beat
Last year was very successful for the government IT and defense services industry.
Market Watch: Cash-rich federal IT firms make strong buyers
The capital structure of companies in the federal information technology sector is overweighed on the equity side.
Market Watch: Titan and Veridian deals ? Indicators or outliers in federal IT
Lockheed Martin Corp.'s acquisition of Titan Corp. is the second "big bang" of the summer, the first being General Dynamics Corp.'s purchase of Veridian Corp. The Titan transaction value of about $2.4 billion, including debt of nearly $600 million, is seen as very aggressive by many industry observers, relative to the expected fiscal 2003 performance of Titan.
Market Watch: Conditions favor continued M&A activity in federal sector
Frequently, industry executives, investors and journalists ask us about the outlook for mergers and acquisitions in the aerospace and defense and government IT sectors. The question is often if the current pace of such deals can continue.
Market Watch: Don't squeeze mid-sized contractors out of market
Competitive stress on mid-sized federal contractors has risen in recent years. Contract bundling is increasing the size prime contractors need to be; at the same time, the administration is pushing for more contract awards to small and disadvantaged businesses.
Market Watch: Think government IT stocks are overvalued? Think again
The Federal Reserve's recent reduction of the short-term interest rate to 1 percent reflects a continuing sluggishness in the U.S. economy overall. Many investors are assessing what these very low borrowing costs mean for both the economy and their investment portfolios.
Market Watch: SBA recertification -- Defuse this time bomb
Recently, the Small Business Administration announced its intention to institute "re-certification procedures," applicable to companies seeking to continue their work under small business contracts beyond the initial contract period.
Market Watch: Savvy investors uncover opportunities in government market
The last few years have been difficult for private equity investors. Many of their investments in the 1990s are underperforming the original expectations upon which funds were committed. This is particularly true for investments in commercial information technology, consulting, telecom and wireless.
Market Watch: Federal R&D program boosts small business values
The war in Iraq, even more so than Operation Desert Storm in 1991, is demonstrating the enormous impact of modern technology on U.S. defense policy and warfighting strategy. Our military branches and intelligence agencies are deploying cutting-edge technologies faster than ever before. Accordingly, those companies that engage in research and development and the follow-on prototyping, testing and production of technology products are critically important in sustaining our technological superiority.
Market Watch: Replacing confusion with clarity in the M&A arena
Frequently, shareholders of government information technology and defense services companies take on sales and divestitures without solid guidance about the mergers and acquisitions market
Market Watch: Eliminating tax on dividends will boost government IT stocks
<FONT SIZE=2>The Bush administration's controversial proposal to eliminate the "double taxation" of dividends would impact capital market investors and influence the decisions of corporate executives and boards of directors. But whether the impacts are negative, neutral or positive will vary by industry and company and depend upon the strategy and stage of development of each business.</FONT>
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